The EUR/USD has entered in a support zone on a 4 hour time frame. The volatility for the price is high, as the price has pierced the Bollinger band and it is trading away from its 20 day moving average. The piercing of the Bollinger band does have a significant importance when this takes place at a resistance/support zone, because this is an ability to stop the upward/downward move or reverse the trend.
Read MoreThe GBP/USD is trading above its upward trend line on a 30 minute time frame. The price has bounced from its support zone as predicted however, it seems like that it is going to visit this level once again. If the price forms any reversal pattern in this zone, then there could be a strong possibility that the upward trend could continue however, a break of this support could open the floor towards the next support zone.
Read MoreThe EUR/USD fell from its resistance zone on a 4 hour time frame as predicted. This resistance zone was given in our analysis on the 25th of October. The volatility of the price is high, as it has pierced the Bollinger band and it is trading away from its 20 day moving average. The pair is still trading above both of the upward trend lines (shown in purple), which confirm that the uptrend is still strong and any pull back could be an opportunity to join this trend.
Read MoreFundamental Analysis
Copper is trading mildly higher this morning with a gain of 0.07% as investors started to gauge in the results of the two days Fed meeting which will conclude tomorrow. It is a common methodology amid traders that they will not take excessive risk when a gun is pointed to their head- The Federal Reserve meeting; therefore we may continue to see no massive move for copper until we have a conclusion of this meeting.
Having said that, the economic docket is well lit today. The PPI, Core Retail Sale, Retail Sales and Core PPI are all due at 12:30 GMT. The forecast for the retail numbers for September is expected to come somewhat flat, which will be a decrease, as compared to August reading. But, in the light of what took place in Washington, we do not expect this data will ignite any kind of firework and a possibility of a downward revision for the next week’s retail number also stays on the cards.
Read MoreThe EUR/USD has touched its resistance zone on a 4 hour time frame. This resistance zone has a significant importance because, when the price was at this level previously, it fell very sharply. The volatility for the price is low, as the price is trading within the Bollinger band and it is also close enough to its 20 day moving average. The pair is trading well above both the upward trend lines which confirm that the uptrend is extremely strong and any pull back could be an opportunity to join this trend.
Read MoreStrategy in Play:
The GBP/USD bounced from its support on a 30 minute time frame as predicted. This support zone was given in our analysis on the 23rd of October. The price is trading in a upward channel and it has not broken this channel so far which means that the bias could be to the upside. However, a break of this channel could increase the selling pressure for the pair as it is trading below the 50 day (shown in green) and near the 100 day (shown in yellow) moving average which confirms that the bulls are struggling.
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